Why Do You Need A Certificate of Publication In New York?
Establishing a limited liability company (LLC) is definitely worth investing in. From personal liability protection up to an unlimited number of owners and shareholders it can have, truly LLC is the right choice.
But behind that, the process might be a lot as an LLC is a legally recognized business entity. If you’re planning to form an LLC in New York, you should be aware that one of their requirements is the certificate of publication wherein two local newspapers are being distributed in the state to inform the public about the newly-established LLC. As one of the states that still require LLCs to have this, the New York City LLC law notes that it must be circulated within 120 days of the LLC formation.
Before we dive into what a certificate of publication is and why it is needed in forming an LLC in New York, you should be aware of how much does an LLC cost in NY. For filing the Articles of Organization, it will require you to pay a state filing fee of $200. Other fees such as New York county fees and newspaper advertising rates will also apply. Approximately, it will cost you around $600-$1200 in total, note that these fees are only for the certificate of publication and filing fee. Fees for licenses and permits are not yet included.
What is behind the certificate of publication in New York? Why do LLCs need to comply with it? What are the consequences in failure of complying with it? Let us unveil them all in this article.
The Certificate of Publication in New York
Before all, we must know what the certificate of publication is. Basically, the certificate of publication in New York is proof that your LLC can comply with the Newspaper Publication Requirement of the state to conserve authorization to conduct the business in the state.
In section 206 of the New York Limited Liability Company Law, the LLC has only 120 days to publicize the Articles of Organization in two general-circulation or local newspapers, from which one is daily and the other is weekly, in the country wherein the LLC is founded. The notice or publication must be circulated once a week for six weeks, wherein information and facts about the company are included.
A Need for Certificate of Publication
The primary purpose of the publication is to inform the public about the newly-formed LLC in the state. Failure to comply with it could lead to several unwanted circumstances such as the suspension of the business operation.
Aside from that, you will not obtain a certificate under seal, also known as a certificate of good standing, from the Department of State on which is a requirement of some vendors or partners who want to work with your company. More than that, you will not have the capability to sue anyone in the New York Judicial System. After complying with the number of publications in the given period, you can now acquire your certificate of publication from the publisher.
From the New York LLC Law, Section 206 outline, the notice of the publication must contain the LLC’s full name, your chosen registered agent’s name, date of formation of LLC, the principal business location with the street implied, and the purpose of your LLC.
As an LLC in New York, you need to comply with the law, specifically the New York Limited Liability Company Law, given that LLC is a type of legally recognized business structure. More than that, complying to it will lead you towards smooth business and legal processes.